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What is the difference between hourly price, variable electricity contract and fixed electricity contract?
What is the difference between hourly price, variable electricity contract and fixed electricity contract?
Updated over a week ago

You can say that there are three types of contracts, fixed price, variable price and hourly billing, where at Greenely we only offer hourly billing. With Greenely's hourly billing, you as a customer only pay the cost price for electricity and overheads for the electricity trade.

The cost price is covered by the parts that are in addition to the individual spot price, which all electricity retailers have.

The cost price per kWh includes:

  • Exchange electricity price (varies every hour)

  • Electricity certificate (at current market price)

  • Guarantees of origin at the current market price

  • Balance responsibility and imbalance costs Fees to eSett, NordPool and Svenska Kraftnät

  • Overhead costs for the purchase of electricity

Time debit

The most market-based type of contract is hourly billing. Today, the electricity grids are so "smart" that it is possible to charge in a way that makes customers pay the actual price for electricity, which varies hourly during the day. Our customers are told what the electricity will cost during the current and next day and can thus choose to consume the electricity when it is cheaper. The customer directly benefits from this, but indirectly it also means that the electricity grid is relieved when the demand for electricity is at its highest. Simply a win-win!

Variable electricity contracts

Variable agreements do not mean, as one might think, that customers pay the price that applies for a certain hour, but instead the price is calculated on an average of the electricity price for a certain period. When the newspapers write that there will be "record prices on Friday morning", there is not much you as a customer with a flexible contract can do to protect yourself from the price increase.

Fixed electricity contracts

With fixed prices, it can be seen as the electricity customers "betting" with the electricity trading company about the price during the contract period. If the actual price of electricity is higher than the agreed price, the customer wins and the electricity company loses, and vice versa. Because the agreements run for a long time, the electricity trading companies also charge a higher price to protect themselves against variations in electricity prices. As a customer, you cannot make any changes in your behaviour, apart from using less electricity, to lower your costs.

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